[ET Net News Agency, 23 August 2019] Daiwa Research lowered its target price for Geely
Automobile (00175) to HK$15 from HK$16 and maintained its "buy" rating.
The research house yesterday hosted a post-results group meeting with Geely's
management, who noted that the high cost was due to the opening of more platforms and
ramping-up of model launches.
Depreciation and amortisation would likely increase significantly in 2019 to CNY4bn.
Management remained optimistic on the 2H outlook, and Daiwa expects Geely and the industry
to see better profitability in 2H. It lowered its 2019-21 EPS forecasts by 6-9% due to
more conservative net margin assumptions of 9-12% (previous 10-13%). (KL)